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Pret A Manger Internationalization strategy

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Pret A Manger Internationalization strategy
From: Group 4
J. Bernardo & C. Boussard & C. Couton & L. Tomuta & M. L. Touré

To: Dr Jovana Stanisljevic

Place of origin: London, UK

Date: October 2014

Plan
I. About PRET A MANGER 1
Brief overview of the organization 1
The company’s current international operations and strategy 3
II. Three potential target markets 5
Brazil 5
Why this country? 5
Which issues in the economic, cultural and political environment will the company have to consider when entering this market? How are those issues likely to impact? 6
Canada 9
Why this country? 9
Which issues in the economic, cultural and political environment will the company have to consider when entering this market? How are those issues likely to impact? 13
Germany 15
Why this country? 15
Which issues in the economic, cultural and political environment will the company have to consider when entering this market? How are those issues likely to impact? 16
III. Our strategy 20
Modes of entry for the new markets 20
Pattern of Internationalization of the company to these three markets using the internationalization strategy model Oli/Uppsala/Born Global 21
Final recommendations for prioritization of the three markets (first, second and third choice) 22
Bibliography 23
Camille 23
João 24
Capucine 25
Ligia 26
Mohamed 27

I. About PRET A MANGER
Brief overview of the organization
Why did we choose to study the case of Pret A Manger? First, because the company is a really successful business, particularly in the UK where the brand is well-known. Secondly, it is interesting to study how this brand has planned to face the increasing competition on the fast food market (Eat keeps opening new stores, Starbucks starts selling sandwiches and even Sainsbury and M&S are places where people go and buy their lunch).

(Uyen LE, 2014)
Pret A Manger is a British company created in London in 1986 by two friends, Sinclair BEECHAM and Julian METCALFE. Pret, as this company is more commonly called, is a



Bibliography: Dave WALLER. (2012). Pret A Manger Rustles Up 550 More Jobs. [Online]. Management Today. Available from http://www.managementtoday.co.uk/news/1125497/Pret-Manger-rustles-550-jobs/. [accessed 23 October 2014] Jane Ellison MP Michael Fitzpatrick. (2004). A doomed venture: How Pret A Manger failed in Japan. [Online]. Available from http://www.just-food.com/analysis/how-pret-a-manger-failed-in-japan_id94145.aspx [accessed 23 October 2014] Rebecca SMITHERS Reuters. 2013. Factbox: Key facts about Brazil 's economy. [ONLINE] Available at: http://www.reuters.com/article/2010/11/19/us-brazil-summit-economy-idUSTRE6AI3ZZ20101119. [Accessed 17 October 14]. Euromonitor International. 2010. 10 Key Facts about Brazil 's Economy. [ONLINE] Available at: http://blog.euromonitor.com/2013/08/10-key-facts-about-brazils-economy.html. [Accessed 17 October 14]. Heritage. 2014. 2014 Index of Economic Freedom. [ONLINE] Available at: http://www.heritage.org/index/country/brazil. [Accessed 18 October 14]. Central Intelligence Agency. 2014. The World Fact Book. [ONLINE] Available at: https://www.cia.gov/library/publications/the-world-factbook/geos/br.html. [Accessed 19 October 14]. Introducing the best of Brazil. 2014. Brazil Bar. [ONLINE] Available at: http://www.brasilbar.com/blog/archives/coffee-consumption-patterns-in-brazil. [Accessed 20 October 14]. COFACE. 2014. Etude économique et risque pays - Canada. [ONLINE] Available at:http://www.coface.com/fr/Etudes-economiques-et-risque-pays/Canada. [Accessed 23 October 14]. Coffee Association of Canada. 2013. Canadian Coffee Drinking Study 2013 Highlights – INFOGRAPHIC. [ONLINE] Available at: http://www.coffeeassoc.com/coffee-in-canada/canadian-coffee-drinking-study-2013-highlights-infographic/. [Accessed 23 October 14]. Dictionnaire des expressions québécoises. 2007. Le Dictionnaire des Expressions Québécoises de Dror (2007). [ONLINE] Available at: http://www.drorlist.com/textes/EQ.html. [Accessed 23 October 14]. Forbes. 2014. Best countries for business. [ONLINE] Available at:http://www.forbes.com/lists/2011/6/best-countries-11_Canada_CHI019.html. [Accessed 23 October 14]. Hofstede center. 2014. Cultural Tools . [ONLINE] Available at: http://geert-hofstede.com/canada.html. [Accessed 23 October 14]. Starbucks. 2014. Store Locator. [ONLINE] Available at: http://fr.starbucks.ca/store-locator/search. [Accessed 23 October 14]. World Bank. 2013. The World Bank - Germany. [ONLINE] Available at:http://data.worldbank.org/country/germany. [Accessed 10 October 14]. Stephen Wagstyl . 2014. Germany slashes its economic forecasts. [ONLINE] Available at:http://www.ft.com/cms/s/0/b0d55bf4-53ae-11e4-929b-00144feab7de.html?siteedition=uk#axzz3H39ltRn5. [Accessed 18 October 14]. Trading Economics. 2014. Germany Productivity. [ONLINE] Available at:http://www.tradingeconomics.com/germany/productivity. [Accessed 18 October 14]. The Economist. 2014. The German Economy - Clouds Ahead. [ONLINE] Available at:http://www.economist.com/news/finance-and-economics/21603439-recent-vigour-hides-underlying-weaknesses-europes-leading-economy-clouds-ahead. [Accessed 18 October 14]. Lee Kuan Yew, Forbes. 2012. Warning Bell for Developed Countries: Declining Birth Rates. [ONLINE] Available at: http://www.forbes.com/sites/currentevents/2012/10/16/warning-bell-for-developed-countries-declining-birth-rates/. [Accessed 18 October 14]. Alex Evans. 2014. Sanctions on Russia could also hurt Germany. [ONLINE] Available at:http://www.thelocal.de/20140324/punishing-putin-could-hurt-germany. [Accessed 18 October 14]. Deloitte. 2013. Taxation and Investment in Germany 2013 Reach, relevance and reliability. [ONLINE] Available at: http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-germanyguide-2013.pdf. [Accessed 18 October 14]. Index Mundi. 2014. Germany Economy Profile 2014. [ONLINE] Available at:http://www.indexmundi.com/germany/economy_profile.html. [Accessed 11 October 14]. The Hofstede Center. 2013. Germany in Comparison with the UK. [ONLINE] Available at: http://geert-hofstede.com/germany.html. [Accessed 17 October 14]. International Coffee Council. 2014. World Coffee Trade (1963- 2013): A Review of the Markets, Challenges and Opportunities Facing the Sector. [ONLINE] Available at: http://www.ico.org/news/icc-111-5-r1e-world-coffee-outlook.pdf. [Accessed 10 October 14]. Anja Spohr . 2012. Coffee-Culture in Germany. [ONLINE] Available at: http://www.typically-german.com/?p=1502&lang=en. [Accessed 11 October 14]. Johanson, J. and F. Wiedersheim-Paul . 1975. The internationalization of the firm Four Swedish cases. Journal of Management Studies, 12 (3), 305-322 Johanson, J Johanson, J. and J.-E. Vahlne. 1990. The mechanism of internationalization’, International Marketing Review, 7 (4): 1-24. John Stuckey and David White. 1993. When and when not to vertically integrate ( Mc Kinsey quaterly). [ONLINE] Available at: http://www.mckinsey.com/insights/strategy/when_and_when_not_to_vertically_integrate. [Accessed 18 October 14]. Kogut, Bruce; Singh, Harbir. 1998. The Effect Of National Culture On The Choice Of Entry Mode, Journal of International Business Studies; Fall 1988; 19, 3; 411 . The Economist. 2013. The Hidden persuaders. [ONLINE] Available at: http://www.economist.com/news/special-report/21587381-protectionism-can-take-many-forms-not-all-them-obvious-hidden-persuaders. [Accessed 22 October 14]. The Hofstede center. 2014. Country comparison: Brazil and UK.. [ONLINE] Available at: http://geert-hofstede.com/united-kingdom.html. [Accessed 18 October 14].

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